S&P 500 Index (^GSPC +0.84%) It is trading at all-time highs despite geopolitical conflict in the Middle East, high oil prices and growing concerns about a global recession. If you’re like me, you’ve probably been watching all this in wonder, trying to understand why Wall Street is so positive despite all the negativity in the world today. Now is the time to reduce risk, move towards investments that have a good track record, e.g. johnson and johnson (JNJ 0.54%) And Coca Cola (To +0.00%).
Dividend Kings Prove They Can Cope with Adversity
Johnson & Johnson is one of the largest healthcare companies in the world. Coca-Cola is one of the The world’s largest consumer products companies. Although they operate in completely different industries, there are two things that tie them together from an investment perspective. First, health care and food are both necessities that you will continue to buy regardless of the stock market or economic climate.
Image Source: Getty Images.
Second, J&J and Coca-Cola Both are dividend kingsEach of which has increased its dividend annually for more than five decades. You don’t set a dividend record like that by accident. This requires a strong business model that executes well in both good and bad times. Coca-Cola’s yield is 2.7%, and J&J’s is 2.3%. Both are well above the S&P 500 index’s meager 1.1% yield.
today’s change
(0.00%) $0.00
current price
$78.43
key data points
market cap
$337B
day limit
$78.12 -$79.19
52wk range
$65.35 -$82.00
volume
611K
average volume
16m
gross margin
61.82%
dividend yield
2.63%
Two strong performing dividend kings
Coca-Cola is actually doing pretty well as a business at the moment. Despite industry headwinds, it was able to grow case volumes 3% in Q1 2026, with organic sales up 10%. Although the business may not be able to maintain that impressive pace, it’s pretty clear that Coca-Cola remains a well-run business. Given that the price-to-earnings ratio is below its five-year average, the stock appears to be fairly valued.
today’s change
(-0.54%) $-1.20
current price
$221.31
key data points
market cap
$533B
day limit
$220.93 -$223.36
52wk range
$146.12 -$251.71
volume
155K
average volume
8.1M
gross margin
67.96%
dividend yield
2.35%
Johnson & Johnson’s valuation doesn’t look that attractive, with its P/E ratio slightly above its five-year average. However, sales increased by 9.9% in the first quarter of 2026. And while earnings were down a bit, management raised its full-year earnings guidance by 7% after just one quarter. The target is to achieve double digit growth by the end of the decade. That’s why investors are positive about the stock, and if the business continues on the current track, it looks like earnings will catch up to the price soon.
Look at dividends, not stock prices
However, the real reason to buy J&J and Coca-Cola is that they allow you to collect reliable and growing dividends. Those dividends are backed by strong businesses with reputable histories. When Wall Street eventually collapses into a bear market, which will happen at some point with 100% certainty, you can take comfort in owning great businesses while focusing on the dividends you’re collecting rather than the stock prices.